IRapproaches

8/8/2019 IRapproaches

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Unitary approach

Pluralist approach

Radical approach

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There is only one source of authority:

management.They own and, therefore,

they controlEmployers perceive themselves as

providers of job, income, and social

security

They believe that conflict is unnecessary

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y The unitary approach is based on the

assumptions that the organisation is, an

integrated group of people with a single

authority/ loyalty structure and a set of common values, interests and objectives shared

by all members of the organisation

y Managements prerogative is regarded as

legitimate, rational and accepted and any

opposition to it is seen as irrational

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y Is based on the assumption that the

organisation is composed of individuals whomake up distinct sectional groups, each with its

own interests,objectives,and leadership

y This approach views conflict as inevitable

because of involvement of various stakeholdersand their respective organisations in

determining the rules of employment

y Stakeholders have their own bases of authority,

and whenever there are separate sources ofauthority, there is the risk of conflict

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Contrary to the unitary approach, the pluralisticapproach sees conflicts between management

and employees as rational and inevitable

The belief among pluralists is that conflict is

necessary, but it can and needs to be managedand resolved

The essential feature of this approach lies in the

recognition of diverging interests between

employees,employers and the state

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y The pluralistic approach accepts the legitimacyof employees combining in formal

organisations to express their interest,influence management decisions inorder toachieve their objectives

y This approach recognizes that labour problems

or issues do not relate only to conflict betweenemployers and employees. They include manyother forms of problems such as lowproductivity, absenteeism, high turnover etc.

y Collective bargaining is one of the means usedfor conflict resolution

y In pluralism, both parties strive to exerciseeconomic as well as political power

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y Class oriented/ Marxist perspectives

y Concentrates on the nature of the society

surrounding the organization

y

Emphasizes the class structure in society formsas an important part of industrial relations and

therefore is concerned with workers and the

working class as well as with unions and

collective bargaining

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y Production system is privately owned and is

motivated by profit

y Control over production is exercised by

managers who are agents of owners

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Class conflict is the source of societal change,

without such change the society would stagnate

Class conflict arises primarily from the

disparity in the distribution of and access toeconomic power within the society

Social and political conflict in whatever form is

merely an expression of the underlying

economic conflict within the society

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Growth of trade unionism is seen as an

inevitable employee response to capitalism

Wherein trade unions not only enhance the

collective industrial power by reducingcompetition between individual employees, but

also provide a focus for the expression and

protection of the interests of the working class

Trade unionism and industrial relations maybe viewed as political activities associated with

the development of the working class

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Unitarism- human relations traditions

Pluralism- organized collective

bargainingRadical- shop-floor discontent

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The interaction among the stakeholders in IR is

characterized by balance of power

In highly regulated IR environment, state will

be dominant Market driven economy-employer dominate

Socialist economy- Trade union dominate

Dominance-submission syndrome in which

dominant stakeholder tends to control the IR

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Signifies that the stake holders engage in a

contest

Steering the choice making processes and

choices Pressure tactics coupled with employment of

leverages like litigation and direct action go

hand in hand with the reaction of the

dominated to protect threatened interest

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The dominant stake holder manages

interaction with less dominant and

dominated stakeholders by makingconcessions to buy peace on an ad-hoc

situational basis

Divide-and rule policy

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Less dominant stake holder through

mechanism of choice making as well as choices

are influenced to favour the dominant

stakeholders. The collusive character of the interaction leads

to the compromise of the interests of the less

dominant stake holder groups.

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ATransformational Process Model

Here the stakeholder responds

appropriatelyChanges not only involves structural

changes and systematic innovations

But it also involves change of mindset and

values of the interacting stake holders

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John Dunlop developed it in 1958.

Analyses IR systems as a sub-system of society

The theory attempts to provide tools of analysis for

interpretation and understanding of the widestpossible range of industrial relations facts and

activities.

The theory tries to explain why particular rules are

established in a particular industrial relation system.

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The systems theory is divided into four inter-related

components namely:

Actors;

certain contexts ; an ideology which binds the IR system together

and a body of rules created to govern the actors at the

workplace and work community.

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The actors are divided into three main groups;

(a) Hierarchy of management

(b) Hierarchy of non-management employees

and their representatives (usually trade unionmembers),and

(c) Specialized government agencies

concerned with industrial relation.

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Employers

Managers

Trade unionsEmployees

Customers

Share holders

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The technological characteristices of the organisation,

the workplace and work community.

The market or budgetary constraints which impinge on

the actors The locus and distribution of power in the larger

society

The actors set rules and regulations for the workplaceand work community.

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Pay and conditions

Productivity

Conflict

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Managerial regulations

Collective bargaining

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IR = f (a,t,m,p,i)

a= Actors- Labour, Employers,Govt

t= Technological context

m= market context

p= Power context

i= ideological context that helps to bind

them together

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Business

Govt

Labour

Economic factors

Technological factors

Sociopolitical factors

National environmentGlobal environment

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This theory regards IR primarily as a process of

converting conflict into regulation

IR thus involves all aspects of job regulation,

the making and administering of the rules,which regulate employment relationships

regardless of whether they are seen as being

formal or informal,structured or unstructured

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Proponent of this theory is Keith Davis

According to him, human relations are the

integration of people into a work situation that

motivates them to work together productively,cooperatively and with economic,

psychological and social satisfactions

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According to him, goals of human relations are:

To get people to produce

To cooperate through mutuality of interest and

To gain satisfaction from their relationships

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Gandhiji had immense faith in the goodness of

man and he believed that many of the evils of

the modern world have been brought about by

wrong systems and not by wrong individualsAtrustee is one who holds property in trust for

another/others

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It becomes trusteeship when a company

accepts its total responsibility and when

managements role becomes that of balancing

all the claims upon the company on the basis ofseeking justice as the aim of business

Gandhi believed that people should keep the

minimum of wealth for themselves to be able to

lead a life that millions lead and give up therest to be held in trust for the greatest good of

all.

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The First Five-year plan emphasized the need

for industrial peace

Plan emphasized two principles

Plan encouraged mutual settlement, collectivebargaining and voluntary arbitration, workers

right of association

Apartnership in constructive endeavour to

promote the satisfaction of the economic needsin the best possible manner

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y The plan stressed the need for a statutorymachinery to settle disputes

y Setting up of tripartite bodies , Indian LabourConference, Standing Labour Committee,Industrial committees

y Need for Systematic grievance procedure andWorks committee, voluntary arbitration, JointManagement Councils, Workers education,

apprentice training were highlightedy Trusteeship and non-violence became the cardinal

principles

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It was observed that the inadequate

implementation and enforcement of awards

and agreements had been a source of friction

between labour and management.Avoidance of dispute at all levels, including the

last stage of negotiations

Suggested penalties for non-compliance in the

implementation and enforcement of awardsand agreements

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ACode of Discipline in industry was

agreed

It suggested restrictions on the number

of outsiders who serve as office bearers

of unions

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Stressed on moral rather than on legal

sanctions for the settlement of disputes

Voluntary arbitration is given more prominence

Scheme ofJoint Management Councils wereintroduced

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Healthy trade union movement for better

labour-management relations

Emphasis on collective bargaining and

productivity

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Strengthening IR and conciliation machinery

Better enforcement of labour legislations

Research in labour relations and labour laws

Imparting training to labour officers Undertaking studies to improve productivity

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Effective arrangements should be made

for the settlement of inter-union disputes

and to discourage unfair practices and

irresponsible conduct

The WPM should be made the vehicle of

transforming attitudes of both employers

and workers with a view of establishing acorporate culture

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There is considerable scope for

improvement in IR which would obviate

the need for strikes and the justification

for lockouts

In the proper management of industrial

relations the responsibility of unions and

employees has to be identified and inter-union rivalry and intra union divisions

should be avoided

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Labour participation in management is a

means of bringing about a state of

industrial democracy.

The need to bring forward a suitable

legislation for effective implementation

of the scheme has been felt.

Besides legislation, proper education andtraining of workers and cooperation from

both employers and employees to

overcome problems arising out of the 48


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Attempts to create conditions for

improvement in labour productivity and

for provision of social security to

supplement the operations of the labour

market.

The resources have been directed

through the plan programmes towardsskill formation and development,

exchange of information on job

opportunities, monitoring of working 49


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The planning commission observed that

the situation of surplus labour, coupled

with the employment of most of the

workers in the unorganised segments of

the economy, has given rise to unhealthy

social practices like bonded labour, child

labour, and adverse working conditionsfaced by the migrant labour.

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Reforms in labour laws and

strengthening the welfare boards

constituted for unorganized sector

workers.While seeking to abolish child labour

and bonded labour, the State proposed to

arrest rural to urban migration of labourby a combined package that included

promoting manufacturing and service

sectors so as to create employment

opportunities for educated youth and 51


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To promote the welfare of labour both in

organised and unorganized sectors with

special emphasis on the latter

To carry out reforms in labour laws in

consonance with technological

advancement and industrialisation

To provide safety net for labour by strictenforcement of labour laws as well as

providing health care and social security

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To encourage establishment ofIndustrial

Training Institutes to cover all areas

especially rural and semi-urban as well

as all the sections of the people

particularly the vulnerable ones, so as to

enable them to acquire technical skills

and secure employment opportunities forensuring inclusive development.

To render Vocational Guidance Services

including dissemination of information 53


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Labour & their representative organisations

(TU)

Employers & their representative organisations

State & its agencies intervening throughlabour laws

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Labour & their representative organisations

(TU)

Employers & their representative organisations

State & its agencies intervening throughlabour laws

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Micro to macro focus

Bargaining to sharing

Developmental role

Openness and transparency

Effective utilisation of alternative forums

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Accept- flexible work practices

Share management of company

Grow- As a partner

Towards e-unions

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Usually named as EmployersAssociations

Awareness creation

Training consultancy services

Referral services/ data services Publication/ experience sharing

Legal advice/ assistance

Social service

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Federation ofIndian Chamber ofCommerceand Industry

Associated Chambers of

Commerce

Confederation ofIndianIndustries

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Policies and practices

From dispute resolution to social and economic

development

Labour policies and labour legislations to coverunorganised sectors in a big way

Address the problems of diverse labour force-

female worker, child labour, unorganised

labour and migrant labour from India andabroad

Emphasis on social justice and economic

growth

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IRapproaches

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